Stock Analyst Per Lekander Predicts Tesla's Bankruptcy: "The Beginning of the End"

Written by Jakob A. Overgaard

Apr.06 - 2024 12:00 PM CET

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Photo: Shutterstock
Photo: Shutterstock

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The Tesla bubble is about to burst, potentially leading to the car brand's bankruptcy, warns stock analyst Per Lekander in an interview with CNBC.

Tesla's stock may not have finished falling. At least, stock analyst Per Lekander predicts its value is heading towards $14, down from the current roughly $171.

Lekander shared this in an interview with CNBC. He made a similar statement to the Norwegian Financial Daily in 2021.

Lekander has been shorting Tesla's stock since 2020, betting on making money from a fall in its value. Despite poor outcomes for others in similar positions, Lekander holds firm.

"This is truly the beginning of the end for the Tesla bubble, which may be the biggest stock market bubble in modern history," he asserts.

Lekander predicts that Tesla's stock will plummet by a whole 92% before the American car brand turns the key for the last time.

However, despite setbacks, Tesla's stock has overall increased by 465%. Not all analysts view Tesla's fate as grimly.

This is in the context of a 33% drop in just the first three months of 2024 alone, which only makes Lekander more convinced.

"If the stock falls below a certain level because of everything that's happened, Tesla will go bankrupt," he says.

"I can't see any reason to expect a recovery in the next two years, as these models are outdated, and the economy is not on the rise."

Tesla, however, is far from being the most troubled car brand at the moment. Fisker Inc., led by Danish Henrik Fisker, is doing so poorly that the New York Stock Exchange has suspended trading of its stock.

Around the same time as this announcement, Henrik Fisker himself revealed that the entire production, which is outsourced in Austria, has been paused for six weeks.

An investment of about $150 million, which was anticipated for Fisker, has also fallen through. This happened because "a major car brand" backed out of negotiations with Henrik Fisker.

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